International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395 -0056
Volume: 04 Issue: 03 | Mar -2017
p-ISSN: 2395-0072
www.irjet.net
Study of different Public-Private Partnership (PPP) Model for the Road Infrastructure Ankit kumar1, Ajaykumar Bhosale2, Akshay Gujar3, Vivekanand Jadhav4, Gaurav Chavan5 12345UG
Students, B.E., Dept. of Civil Engineering, SGI, Kolhapur, Maharashtra, India
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Abstract - India has the second largest road network in the
world, with over 5.53 million kilometer including all expressways, highways, MDR, ODR. Due to insufficient fund the road development fails to meet the growing up needs .This raise to involvement of private sector in development of road. In most developing countries public private partnership is relatively new trend in urban infrastructure. Government both at national level and state level are focusing to implement their projects through PPP model. The public private partnership models that have been used currently in execution of national highway projects are built operate transfer (BOT)toll, BOT annuity and hybrid annuity models .This paper focuses on the concept and current status of PPP in India and study of various PPP models.
Key Words: PPP, BOT, HAM, Road, NHAI.
1. INTRODUCTION India has one of the largest road network in the world aggregating about 5.3 million km .The major source of financing for road projects in India is budgetary allocation .These allocations have resulted in an increase in the length of road network from 0.4 million km in 1950-51 to 5.3 million km in 2015-16. Due to lack of fund the development of road network has failed to keep pace with growth in traffic. To give boost to the economic development & to change face of road network, government in 1998 introduced PPP system. In order to improve the quality of the road network to world class standards, Government have started various programmes at central and state levels. For example the central government has introduced various structural reforms to promote private sector participation in the development of road network. . The private sector has been playing an important role in the development of this sector. The concept of Public Private Partnerships (PPPs) has emerged as a viable option for road network development especially in the context of developing countries. The term PPP refers to long term contractually regulated coordination between public and private sector for the fulfillment of public task in combining the necessary © 2017, IRJET
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resources of partners and distributing existing project risk according to risk management.
1.1 NEED OF PPP
PPP is needed in various road infrastructure project due to various difficulties occurred in project financing of various conventional project. PPP is needed to transfer the workload of government sector to the private sector .Also quality of work is maintained by the authority of government sector. By introducing PPP the private technology and innovation in providing better quality of work is also assured. To complete the project on time and within the budget PPP is required. As government is not willing to spent more fund on road infrastructure project due to small amount of capital .PPP will be useful for providing fund for the project in some extent. Also the possible risk of investment of fund is distributed between the government and private sector .By using PPP we can achieve sustainable development in the road infrastructure project. There are various PPP models each one is unique and can be designed to meet exact needs of local community. Public authorities may lack specialist project management skills necessary to complete project which can be possible by involvement of the private sector.
1.2 PPP Advantages and Disadvantages PPP advantages
Ensure the necessary investments into public sector and more effective public resources management;
Ensure higher quality and timely provision of public services;
Mostly investment projects are implemented in due terms and do not impose unforeseen public sectors extra expenditures;
A private entity is granted the opportunity to obtain a long-term remuneration;
Private sector expertise and experience are utilized in PPP projects implementation;
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